POINTS

EXPLANATION

1. Tribunal to cause intimation of its order:
 

Where the Tribunal makes an order for appointment of provisional liquidator or for the winding up of a company, it shall, within a period not exceeding seven days from the date of passing of the order, cause intimation thereof to be sent to the Company Liquidator or provisional liquidator, as the case may be, and the Registrar.

2. Registrar to notify the order of Tribunal in Official Gazette:
 

With respect to all companies - On receipt of the copy of order of appointment of provisional liquidator or winding up order, the Registrar shall make an endorsement to that effect in his records relating to the company and notify in the Official Gazette that such an order has been made, and

In the case of a listed company, the Registrar shall intimate about such appointment or order, as the case may be, to the stock exchange or exchanges where the securities of the company are listed.

3. Winding up order to be deemed to be notice of discharge:

The winding up order shall be deemed to be a notice of discharge to the officers, employees and workmen of the company, except when the business of the company is continued.

4. Constitution of winding up committee to monitor liquidation proceedings:

Within 3 weeks from the date of passing of winding up order, the Company Liquidator shall make an application to the Tribunal for constitution of a winding up committee to assist and monitor the progress of liquidation proceedings by the Company Liquidator in carrying out the function as provided in sub-section (5) and such winding up committee shall comprise of the following persons, namely:

1. Official Liquidator attached to the Tribunal.
2. nominee of secured creditors; and
3. a professional nominated by the Tribunal.

5. Areas in which winding up committee to assist and monitor liquidation functions:

The Company Liquidator shall be the convener of the meetings of the winding up committee which shall assist and monitor the liquidation proceedings in following areas of liquidation functions, namely:

1. taking over assets.
2. examination of the statement of affairs.
3. recovery of property, cash or any other assets of the company including benefits derived there from.
4. review of audit reports and accounts of the company.
5. sale of assets.
6. finalization of list of creditors and contributories.
7. compromise, abandonment and settlement of claims.
8. payment of dividends, if any.
9. any other function, as the Tribunal may direct from time to time.

6. Submission of report and minutes of meetings of the committee before Tribunal on monthly basis:

The Company Liquidator shall place before the Tribunal a report along with minutes of the meetings of the committee on monthly basis duly signed by the members present in the meeting for consideration till the final report for dissolution of the company is submitted before the Tribunal.

7. Company liquidator to prepare draft final report:

The Company Liquidator shall prepare the draft final report for consideration and approval of the winding up committee.

8. Submission of approved final report before the Tribunal for passing of dissolution order:

The final report so approved by the winding up committee shall be submitted by the Company Liquidator before the Tribunal for passing of a dissolution order in respect of the company.